The FWD is calling on wholesalers across the UK to contact their local MPs to outline how the proposed higher business rates multiplier for properties with a rateable value above £500,000 would impact their businesses.
The association explains that these reforms risk penalising the depots that keep the UK food system moving, including the supply of schools and hospitals, as well supporting local shops and hospitality.
James Bielby, Chief Executive, FWD said: “Wholesalers are not online giants. They are the backbone of the UK’s food supply chain, operating on tight margins and serving schools, hospitals, care homes, and high street retailers.
Read more: FWD urges business rates reform to Chancellor
“If these reforms go ahead without exemptions for our sector, the result will be higher food prices, job losses and stalled investment in vital upgrades. We’re calling on the government to level the playing field and protect the businesses that feed the nation.”
In a recent FWD member survey, the results revealed the following:
- 80% of wholesalers operate sites above the £500,000 rateable value threshold and will be hit hardest.
- Business rates have already risen by up to 30% in recent years, with some facing a further 20% hike.
- One major group has 200 of its 257 depots in the higher band, putting its entire model at risk.
- 80% of wholesalers say they will cut jobs or pause recruitment if these changes go ahead.
- Some wholesalers face cost increases of up to £3 million, threatening viability and investment in modernisation and net zero upgrades
